Saudi Arabia's Naimi says oil supply currently 'ahead of demand'

Amman (Platts)--15May2006

World oil supply is currently exceeding demand, and there is no lack of
spare capacity, Saudi Arabian oil minister Ali Naimi said Monday.
"There is no lack of capacity today, supply is ahead of demand," Naimi
told reporters in Amman.
Rather than a lack of supply, current high oil prices were being caused
by strong economic growth, Naimi said.
Naimi declined to comment specifically on whether or not the high prices
were eroding demand, noting only that "in general when prices are high people
check their pockets and when price are low they open their pockets."
On Sunday Naimi said he believed oil prices would likely remain firm
during the rest of this decade.
The Saudi minister also said his country, with a quarter of global
reserves, was committed to increasing production capacity from 11.3 million
b/d to 12 million b/d by 2008.

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